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Bank of England governor ready to stay on to help smooth Brexit

Mark Carney, having extended his term once, says he’ll stay on longer and a replacement will be easier to find when the full Brexit terms are known

04 September 2018 - 16:05
David Milliken and Kylie MacLellan

Mark Carney. Picture: REUTERS

London — Bank of England (BOE) governor Mark Carney has said he is ready to stay in his job beyond his planned leaving date next June, saying he is willing to do what he can to ease Britain’s economy through its departure from the EU.

When Carney moved to London from his native Canada in 2013, he agreed to stay at the BOE until 2018 before he extended his term by a further year in 2016 to help Britain through Brexit, which is scheduled to happen in March next year.

"Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can to promote both a smooth Brexit and an effective transition at the BOE," Carney told lawmakers on parliament’s treasury committee on Tuesday. "The chancellor [finance minister Philip Hammond] and I have discussed this. I expect an announcement to be made in due course."

British media said last week that Hammond wanted Carney to stay at the BOE longer, a move which would allow the finance ministry to focus squarely on Brexit negotiations over the next few months. Carney said on Tuesday that it might be easier to find his replacement once the terms of Brexit are known.

"There are some advantages for that process to be run in the context of full knowledge both of the government of the day and the applicants, those interested parties in the position, of the exact form of Brexit the country has decided to take," he said.

Carney also said Britain’s economy would suffer a shock if the country leaves the EU without reaching a deal, and less than 20% of British companies were putting in place their plans for a no-deal Brexit scenario.